Why is Yarn Syndicate falling/rising?

As of 22-Jul, Yarn Syndicate Ltd's stock price is currently at 21.13, reflecting an increase of 0.5 or 2.42%. The stock has shown strong performance recently, gaining 7.48% over the last two days and outperforming its sector by 2.65%. In the past week, it has risen by 3.58%, while over the past month, it has increased by 23.50%. Despite a significant decline of 60.13% over the past year, the company has reported positive financial results, including a remarkable 736.6% growth in net sales and a profit after tax of Rs 0.63 crore, contributing to a more attractive valuation with a return on capital employed (ROCE) of 5. However, concerns remain regarding its long-term fundamental strength, as indicated by a high debt to EBITDA ratio and an average ROCE of 1.73%.
In the broader market context, Yarn Syndicate's recent performance contrasts sharply with the benchmark, as the Sensex has experienced a slight decline of 0.47% over the past week. While the stock has shown positive short-term returns, it has significantly underperformed the market over the last year, where the BSE500 index generated a return of 0.99%. This underperformance highlights the challenges the company faces despite its recent gains, as it continues to grapple with a weak long-term outlook and high debt levels, which may affect investor sentiment moving forward.